Robo advisor Wealthsimple raises £37 million to fuel growth

The startup launched in the US and UK last year and will use the funds for further expansion.

LONDON — Canadian robo advisor Wealthsimple has raised a further £37 million ($51 million, C$65 million) in financing to fuel growth.

Wealthsimple, which was founded in 2014, has raised the sum from existing investor Power Financial, taking the total invested in the company by Power to £94 million.

Wealthsimple is an online investment platform pitched at millennials. It is one of a number of so-called "robo advisors"— low cost, mobile-focused investment offerings that have little human oversight compared to traditional investment strategies. 80% of Wealthsimple's clients are under 45 and 40% are first-time investors, according to the company.

Michael Katchen, CEO and co-founder of Wealthsimple, said in a statement: "Wealthsimple had an incredible 2017. We expanded to our first international markets, and tripled the number of clients who invest with us."

The startup launched in the US and UK last year. Katchen said the latest funding injection would help fund further growth in these markets.

"We're looking forward to building on this momentum, making an even better product for even more clients in the months and years ahead," he said.

Toby Triebel, Wealthsimple's European CEO, said: "In the UK we're looking forward to adding more products to our line-up in the coming year and making it even easier for people to invest in their values through offerings like our SRI (Socially Responsible Investing) portfolio."

Other major "robo advisor" players include Betterment and Wealthfront in the US, and Scalable Capital, Moneyfarm, and Nutmeg in the UK.

Paul Desmarais III, chairman of Wealthsimple and Senior Vice-President at Power Financial, said: "We at Power Financial are proud to be Wealthsimple's greatest champion as it becomes a global leader in marrying unique digital technology with great content and service."